The International Monetary Fund (IMF) has urged the Federal Government to resist pressure to reintroduce a general petrol subsidy, arguing that financial assistance should go directly to Nigerians struggling with rising living costs.

Channels Television reported that, Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department, gave the advice during a briefing on the Fund’s Fiscal Monitor at the 2026 IMF-World Bank Annual Meetings in Bangkok.

Responding to concerns that higher fuel prices could increase transportation fares, fuel inflation and worsen poverty in Nigeria, Valdés said governments should protect vulnerable citizens through direct support rather than keep fuel prices artificially low.

“Protecting people is not the same as protecting the price of fuels,” he said.

Valdés disclosed that fuel subsidies and other interventions designed to shield consumers from energy price increases had cost countries between one and 1.5 per cent of gross domestic product in 2026. He warned that broad-based subsidies could place additional pressure on public finances while disproportionately benefiting wealthier consumers.

The IMF official recommended the use of social protection programmes and household data to identify those most in need of assistance.